AR Homework Question \#2 1. A company has net sales of $50,000 during the year. At year end the Allowance for Doubtful Accounts has a credit balance of $2,500. Bad debt expense is estimated at 3% of sales. A. Prepare the necessary adjusting entry for uncollectible accounts using the Percent of Sales Method B. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts and Bad Debt Expense C. Determine the Net Realizable Value of Accounts Receivable 2. At the end of the current year, Accounts Receivable has a balance of $225,000; Allowance for Doubtful Accounts has a credit balance of $1,500; and net sales for the year total $2,500,000. Bad debt expense is estimated at 2% of sales. Using the Aging Method, the ending balance in the Allowance for Doubtful Accounts should be 4% of accounts receivable. A. Prepare the necessary adjusting entry for uncollectible accounts using the Aging of Receivables Method B Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts and Bad Debt Expense C Determine the Net Realizable Value of Accounts Receivable